- Total Revenue (Q4 2024): RMB44.3 billion (USD6.1 billion), up 6.1% year-over-year and 3.3% quarter-over-quarter.
- Vehicle Sales Revenue (Q4 2024): RMB42.6 billion (USD5.8 billion), up 5.6% year-over-year and 3.2% quarter-over-quarter.
- Gross Profit (Q4 2024): RMB9 billion (USD1.2 billion), down 8.3% year-over-year and 2.8% quarter-over-quarter.
- Vehicle Margin (Q4 2024): 19.7%, compared to 22.7% in Q4 2023 and 20.9% in Q3 2024.
- Gross Margin (Q4 2024): 20.3%, compared to 23.5% in Q4 2023 and 21.5% in Q3 2024.
- Operating Expenses (Q4 2024): RMB5.3 billion (USD721.6 million), down 22% year-over-year and 9.1% quarter-over-quarter.
- R&D Expenses (Q4 2024): RMB2.4 billion (USD329.9 million), down 31% year-over-year and 6.9% quarter-over-quarter.
- SG&A Expenses (Q4 2024): RMB3.1 billion (USD421.5 million), down 5.9% year-over-year and 8.4% quarter-over-quarter.
- Income from Operations (Q4 2024): RMB3.7 billion (USD507.4 million), up 22% year-over-year and 7.9% quarter-over-quarter.
- Operating Margin (Q4 2024): 8.4%, improved from 7.3% in Q4 2023 and 8% in Q3 2024.
- Net Income (Q4 2024): RMB3.5 billion (USD484 million), down 38.6% year-over-year and up 25.3% quarter-over-quarter.
- Cash on Hand (End of 2024): RMB112.8 billion (USD15.5 billion).
- Net Cash from Operating Activities (Q4 2024): RMB8.7 billion (USD1.2 billion).
- Free Cash Flow (Q4 2024): RMB6.1 billion (USD830.1 million).
- Vehicle Deliveries (Q4 2024): Over 158,000 vehicles.
- Full Year Deliveries (2024): Over 500,000 vehicles.
- Retail Stores (End of February 2025): 500 stores in 150 cities.
- Supercharging Stations (End of 2024): Over 1,900 stations with over 10,000 charging stalls.
- Warning! GuruFocus has detected 5 Warning Sign with LI.
Release Date: March 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Li Auto Inc (NASDAQ:LI) achieved a record quarterly delivery of over 158,000 vehicles in Q4 2024, with full-year deliveries exceeding 500,000 units.
- The company reported total revenues of RMB44.3 billion in Q4 2024, contributing to a full-year total of RMB144.5 billion.
- Li Auto Inc (NASDAQ:LI) has a strong cash position with RMB112.8 billion on hand, supporting long-term investments in electrification and AI.
- The company is expanding its supercharging network, aiming for 2,500 stations by the launch of its first battery electric SUV, Li i8.
- Li Auto Inc (NASDAQ:LI) is advancing its overseas expansion, with a new R&D center in Munich and service centers in Kazakhstan, Dubai, and Uzbekistan.
Negative Points
- The vehicle margin decreased to 19.7% in Q4 2024 from 22.7% in the same period last year, due to a different product mix and interest subsidies.
- Gross margin also declined to 20.3% in Q4 2024 from 23.5% in the same period last year.
- Net income in Q4 2024 was down 38.6% year-over-year, despite a quarter-over-quarter increase.
- The company expects a year-over-year decrease in Q1 2025 total revenue, reflecting a challenging market environment.
- Li Auto Inc (NASDAQ:LI) faces intense competition in the NEV market, with a focus on autonomous driving and AI advancements.
Q & A Highlights
Q: Can you provide details on the launch and timing of your new BEV models and your AI strategy? A: Xiang Li, Chairman and CEO, stated that Li Auto plans to launch two pure electric SUVs this year: the Li i8 in July and the Li i6 in the second half of the year. The focus is on improving AI capabilities, particularly in autonomous driving, by integrating vision, language, and action models into a single system to mimic human understanding and driving capabilities.
Q: How does Li Auto plan to achieve sales growth amid intense competition? A: An unidentified company representative explained that the strategy includes product upgrades, expanding the sales network, enhancing marketing practices, and overseas expansion. New BEV models and improved autonomous driving systems will support growth, alongside increased retail presence and partnerships in Tier 4 and Tier 5 cities.
Q: What is the outlook for Li Auto's AI investments and potential new applications? A: The company plans substantial growth in AI investments, primarily funded by operational cash flow. The focus is on positioning Li Auto as a device manufacturer in the AGI world, developing robots that enhance human capabilities and operate autonomously in various environments.
Q: What are the expectations for the NEV market and competition in 2026, and how will autonomous driving software be monetized? A: The company anticipates increased NEV penetration and market concentration, with brands gaining share through product and service advantages. Autonomous driving will evolve from a tool to a driver agent, potentially leading to new business models and monetization opportunities as users pay for advanced driving services.
Q: Can you provide guidance on the first quarter gross margin and address reports about management focus shifts? A: An unidentified company representative indicated that Q1 vehicle gross margin is expected to be around 19% due to seasonal factors and promotions. Mr. Li remains CEO, overseeing vehicle-related departments, with no change in management focus from 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Comments